in 2019, a Chinese national in Oregon, Quan Jiang, pleaded guilty to trafficking in counterfeit goods. Over a two-year period, he sent around 3,000 fake iPhones to Apple, claiming they were malfunctioning and eligible for replacement under warranty. Apple responded by sending almost 1,500 genuine replacement iPhones, resulting in a loss of $895,000 for the company. Jiang imported counterfeit devices from Hong Kong and submitted them to Apple using various aliases, while his associate sold the genuine replacement iPhones in China. Apple's vulnerability in the warranty process, which allowed fake devices to be replaced, was exploited by Jiang. He was facing a maximum sentence of 10 years in prison and a $2 million fine, with a recommended prison sentence of three years and $200,000 in restitution to Apple under a plea agreement. He was also to forfeit his 2015 Mercedes-Benz CLA 250 coupe. 😂